Cosmetics stocks, beauty stocks, cosmetics retailers

EL has just announced the promotion of Sue Fox to President of the United Kingdom, Ireland

The Estée Lauder Companies Inc. (NYSE: EL) is one of the world’s leading manufacturers and marketers of skin care, makeup, fragrance and hair care products. Estée Lauder products are sold under brand names in approximately 150 countries and territories, including: Estée Lauder, Aramis, Clinique, Lab Series, Origins, Tommy Hilfiger, M A C and many others. This morning EL is trading lower with the broader market, 3.2% to $ 317.

On July 14th, Estée Lauder announced that Sue Fox had been promoted to President of Estée Lauder UK and Ireland. Since January 2020, Fox has held the position of Senior Vice President and General Manager, in which role he was responsible for overseeing EL’s business in the most established regions outside the United States.

Analysts are currently forecasting a sharp drop in earnings per share (EPS) for Estée Lauder’s Q2 report and are expecting $ 0.50 after the company posted $ 1.62 EPS in the first quarter. As a further side note, however, Estée Lauder has exceeded analysts’ earnings expectations in all three of its most recent earnings reports. The company’s last loss of earnings happened in the second quarter of 2020, when the company missed estimates by $ 0.34.

Estée Lauder stock is up about 60% year over year and is up 70% since its low of $ 187.75 in July 2020. Additionally, EL’s shares are up 19% year-to-date, recently hitting a record high of $ 328.64 on July 16. Estée Lauder stock also boasts a forward dividend of $ 2.12 and a dividend yield of 0.65%.

Meanwhile, traders in the option pits are trending bearishly. This corresponds to the security’s 50-day put / call volume ratio of 1.03, which is above 94% of the readings on the International Securities Exchange (ISE), Cboe Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX).

Overall, with a market capitalization of $ 114 billion and a price-to-earnings ratio of 83.76, Estée Lauder stock doesn’t offer much growth potential, especially given the limitations of a business model based on retailing consumer goods. Estée Lauder stock also boasts a price / earnings ratio of 44.84, which is a big improvement but still suggests the company is overvalued. Nonetheless, Estée Lauder is well on its way to recovering from its pandemic earnings and net income losses. EL is likely to continue its uptrend, but it’s important to note that Estée Lauder stock is at an all-time high so it may be worth waiting for a better entry point.


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